The unregulated Forex brokerage CodeFX registered in Bulgaria and the Marshall islands has been added to the warning list of the Italian financial watchdog Commissione Nazionale per le Societa e la Borsa (CONSOB). CONSOB keeps and updates one of the most comprehensive list of unauthorized financial service providers that are operating illegally in Italy.
CodeFX operates via the website codexfx.com and according to the information from the website it is registered in both Bulgaria and the Marshall Islands. The Balkan country is an EU member-state and does regulate Forex trading along the guidelines of the ESMA. Going through the online registry of the Bulgarian authorities we did not come across the name of the company which isn’t surprising. Furthermore, the Marshall Islands is a favorite offshore destination for shady brokerages due to the isolated location of the country and the lenient laws regarding the registering of firms.
The brokerages provides a web-based trading platform, however, there is no demo account available and the trading conditions are unclear. Furthermore, readers are urged to take heed of the warning issued by the Italian authorities which reads that the brokerage is providing financial services unauthorized and is targeting Italian traders illegally.
We always remind readers that the best way to exclude all risk of fraud in trading is by associating only with entities that fall under the regulatory oversight of prestigious agencies such as the FCA in the UK or CySEC in Cyprus.
Here is a screenshot of the complete list of unregulated, ill-minded Forex brokerages that have been added to the warning list of CONSOB on Monday: